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Cavuto on Business

News/Business. Neil Cavuto and panelists discuss issues that impact the stock market. New. (CC)

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00:30:00

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mpeg2video

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704

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Us 9, Ben Stein 6, Ho Nellie 2, Harry Reid 2, Adam 2, Actonel 2, Henry Waxman 2, Nancy Pelosi 2, America 2, New York 2, Enron 1, Ben Is 1, Nation 1, United States 1, Cigna 1, Fox Business Network 1, Neil 1, The Nation 1, Blackberry Pomegranate 1, Nellie 1,
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  FOX News    Cavuto on Business    News/Business. Neil Cavuto and panelists  
   discuss issues that impact the stock market. New. (CC)  

    August 1, 2009
    10:30 - 10:59am EDT  

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elizabeth: thank you for joining us, "cost of freedom" the number one business block on tv continues with neil cavuto right now. [captioning made possible by fox news channel] neil: a 180? just days after its director is called to the white house the c.b.o. comes out with a report favorable to the white house. coincidence? hi, everybody. let's get reaction now from ben stein and charles, dagen mcdowell, adam, they're all back. the congressional budget office issuing a support suggesting government-run health care can coexist with private insurers. democrats pushing it from an agency that was just last week dead set against at least some of the cost from it ben, sound a little fishy to you? >> it's a disgrace. the office is supposed to be run
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by congress. it's supposed to be a check and balance on the white house. the white house called in this guy. i don't know that this ever happened before with the congressional budget office. maybe it has. it's extremely rare. it's really a disgrace to the constitutional government. neil: charles, the timing is weird. >> the timing is weird. smell fishy? i smell a rat. if the president calls him up here, you know they didn't have beer so he probably made him drink whiskey out of a dirty glass. how do you go from a trillion dollars covering a third of the people to $900 billion covering everybody? something is not right. neil: i found that interesting. we got it down to $900 billion. this baby's going to go. dagen? >> i think he's talking about rats. i think it's the cat is already out of the bag regarding what this thing is going to cost. and knowing that the c.b.o. estimates, any ones that we get, are going to be way too low. it's one of the reasons -- you
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see the tide turning in terms of the perception in america about this thing. people increasingly not in favor of it because they say, wait, 85% of the people, most of them say i like the health insurance i've got. this is going to maybe reduce the quality, not lower my cost. and you're going to tax me or maybe a business owner to pay for it? ho nellie. that's what's happening. neil: ho nellie? ok. >> it's whoa nellie. [laughing] neil: you could be the first one in the country that's disappointed the costs were going down on this puppy. come on, guys, we can make $1.1 trillion. i'm kidding, of course. but what do you make of that and the timing of it all? >> well, i'm glad you raised timing. i will remind you that you gave me a verbal pat on the back a couple of weeks ago when i said i'd like to see this thing happen more slowly because it's important. it's not a good idea for us to rush this. that's exactly what's happening here right now. we're not going to have a bill
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until september. we can argue about it and discuss it. and that's a good thing. you also said the right thing earlier. it only went down by $100 billion to $900 billion. and i think it's reasonable that, first of all, something happened there. there was a negotiation. they eliminated some things from it. they haven't told us yet what those things were. but that's what knocked some of the costs out. neil: it's not like a moving target here. the congress barely knows -- >> there's no $1 billion. neil: congress barely knows what it's going to have for lunch tomorrow let alone setting a budget on something a decade out. ben stein, should we believe any of these numbers and this latest revised set of numbers? >> no, you shouldn't believe any of them. i might add the republicans are guilty of this, too. neil: absolutely. >> this dynamic scoring thing where they would pay to have tax cuts, revenue would go up. that was all a fake, too. what i'm worried about is attack
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on the constitution. i must say, $100 million there, $100 million there. it's so much money i don't even think about it anymore. but an attack on the constitution whereby the executive branch tells the congress explicitly what to do item by item in a column of figures, that is very worrysome. neil: charles? >> but you don't know that's what happened. we can at least give them the benefit of the doubt. >> no! no! no. no. no. no. no. absolutely not. he called it -- >> why not? >> this is a guy who's a very, very careful guy. they came in and browbeat him, robbed him, probably did some ballet dance on his head. [laughing] then suddenly comes out with these sets of numbers. neil: we do not know if he did a ballet dance on his head. >> but did he all the other stuff ben said. ben is right. neil: about the ballet dancing on the head? >> i'm not sure about that one. obviously there was some serious
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intimidation here. and the power grab part is what we all have to be afraid of from the specter generals that don't report to the -- inspector general that don't report to the president appointed by him, to the czars to this kind of thing. i was so appreciative of the c.b.o. being this neutral party to this thing, and now they're just going to be a tool in this, you know, a pawn for the president. it's scary. neil: dagen, we did find out the president just forced dalendorf to watch cnn and -- he said this is -- what do you make of this? people are going to be very cynical and jaded going forward here. >> they sure are. it's not the power of the executive branch and the administration. it's the power that the white house has handed to the house in all of this. because american people know congress people in the house don't make policy for the nation. they're looking out for their own best interest and just their constituents. and the fact that they --
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neil: we'll get into this later, but if this was our best interest, they don't want any part of it. henry waxman is indicating he doesn't want any part of it. that's a separate issue. where does this go forward? >> you're going to have -- eventually you will get health care overhaul. it will come out. this is a prediction. out of senate finance and max baucus. and it will be so watered down it will insure a few million more people. it won't do anything for the cost. it will include cooperatives. and it will end up taxing people's health care benefits in some way, the excessive benefits you get through your employer. neil: regardless of whether that happens it sounds to me that something happens. something gets done. it might not be to dagen's liking or charles' like organize ben's like organize even your liking, but something will get done. is that true? >> i think she's right. i think it will be watered down. and that's an interesting observation. but willful to decide. do we want the white house to be
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driving it or not driving it, dagen? we want all of these parties involved, obviously. neil: charles? >> we're going to get something done. i'm disappointed with the blue dog democrats. they made a stand and then started to wilt at the end. when they started saying they want the optional plan, the public part to be optional, i get confused. if that public part is in there, i don't think it's -- >> another prediction. won't be in there. no public plan. no way, no how. neil: news flash. do you think when they say cooperative, that isn't a public plan? >> money wise, management, no. neil: i could change, you know, my description from overweight to calorically challenged. [laughing] my point is, it doesn't mask reality. right? >> that's the danger. neil: i'm not cooperating with their definition of cooperative. cooperative is a large public entity in this case 50-state
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such entities that cooperate at government direction. that's another word for government. >> the goal is to get more people health insurance, neil. that's what we're trying to get. neil: it's a cookbook! we're going to take a break here. did you hear this outraged citizen? >> nancy pelosi, harry reid, and the rest of the people in congress and the fed are they going to be willing to be on the same plan they're asking us to be on? neil: a democratic leader just giving her an answer. let's just say she and you will not be very happy when you hear it. it's a yogurt for digestive health. here... blackberry pomegranate. i can't find my hand. (announcer) yoplus... a delicious alternative for digestive health... ...from yoplait.
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i'm toni braxton. learn the signs of autism at autismspeaks.org. >> the main terminal at new york's la guardia airport open again after a security scare this morning. the entire terminal had to be evacuated shortly before 6:00 this morning after security spotted a man with a fake bomb in a bag. they tell us the man was, quote, acting crazy. now cops say the device was never a threat, just a few batteries and wires. the man is now in custody. and you got to conquer. the dak dak is back on -- cash for clunkers is back on. congress approving an additional $2 billion for the cash for clunkers. the goal to take environmentally unfriendly gas guzzlers off the road and replace them with more
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fuel efficient vehicles. the program was so popular funds ran out after just a week. "cavuto on business" returns right now. see new 30 minutes here on fox. >> nancy pelosi, harry reid, and the rest of the people in congress and the senate, are they going to be willing to be on the same plan they're asking us to be on? neil: that's the question. we just found out that the answer is no. henry waxman, the committee chairman, making the decisions, declaring members of congress do not and will not have to join the government-run health care plan. that automatically raises your antenna. >> hand me my torch. i'm ready to join that lady and that crowd. you got to be kidding me. it's a combination of marie antoineet and nero. let them eat cake and play the fiddle while rome burns. they should be willing to be on this if it's so important, so incredibly going to be so great for so many people, here's the real deal.
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they're going to funnel people who already have great plans and ultimately that's the game plan, into a single-payer system that's going to be a disaster. they don't want to be a part of it that is the height of hypocrisy. i say ho nellie. [laughing] >> why can't congresspeople be forced to eat their own cooking? they're in such a big old rush to put this thing together and push it through. they should have to eat what they fix. and i mean they should have to sift every piece of mail through the post system and go stand in line, and they should have to use whatever health care they cook up. neil: try to look at this gliffing it every benefit of the doubt. but sometimes when someone says an asinine statement you say they could not have meant that. so maybe they're looking at it this way. that like you, we in congress, have the option of being part of this and our option is to stay with what we've got because we like what we've got. >> well, i don't think that's
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such a silly statement. would flip it around slightly. the fact is that the legislation doesn't require anybody to be in the public option it doesn't require people with insurance to be in the public option. neil: but what do you make -- if you are creating -- i'm saying if you are going to the trouble of creating this public option that you want made available for americans, aren't you going to at least be like the lifeguard and says the water is fine, come on in? >> well, they have insurance. they have insurance already. and maybe they will join it. i don't know. this was an attempt to embarrass them to say you have to join it, by telling them what to do. which, by the way is exactly what they're not telling the american people they have to do. neil: what do you make of that? >> they're not required to join anything. >> i've decided adam is 100% right in this case. i don't see why a person who has a perfectly good policy for executives, supermen above the normal person, should have to join the same plan that the
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normal person has to join. members of congress are not ordinary citizens. they're supermen. so are members of the white house staff. >> exactly. >> seriously. i don't think they should have the obama care plan at all. i don't think the fact that a poor person wants to have the same health care as a rich person means he has to have the same care as a rich person. know things shouldn't be changing much at all. i think this should be handled through private charity. i'll be the first to contribute and will contribute a lot but i don't think it should be done by government. it's another giant encroachment of government on people's lives. i'd like to say deep six the whole thing, let congress keep their health plan and leave it as it is except make sure people contributed more money and have mr. obama and ben stein be the first to contribute. >> it's the hidden unknown knock on effects of whatever congress winds up putting together with the public plan. what it's going to do is increase costs for people who still have private insurance because that's essentially what medicare does. they reimburse at lower rates.
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and so the higher costs are passed on to people with private insurance. so, again -- neil: and medicare is hardly a stellar example. just celebrated its anniversary, started out as a $64 million program. it's paid out $5 trillion. it's a monstrosity. >> in 2017 -- >> don't say that. i'm going to be getting it soon. >> that's the problem. neil: that's what's wrong with it! that's my point. if you are getting it -- >> what's wrong with this? neil: because you don't need it. that's the problem -- >> eligible. neil: all right. he's eligible. >> all right. well ben doesn't need it. once people go on it regardless of their wealth, they don't care, they're excited and they consume as much health care as they want. neil: that's right. our buddies will get it. just this one thing sticks in my crow when i think of the rising cost of that. but, charles, be that as it may and one thing i wanted to
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briefly raise with ben stein, very big in hollywood, very accomplished actor, comedian, other things, appearances mean a lot. think the appearance of making big sub tantive change in our -- substantive change in our health care policy does lead to you pick up some of the things you do. >> absolutely. i think the appearance of our leaders means more than anything else. it should. maybe not anymore. maybe in this era when someone can get caught on steroids and we give them a standing ovation because they had a home run the next game, maybe it doesn't matter to some anymore. but i don't consider these people to be super people unless they do a super job. >> they decide because they're the bosses. you know what the who said. meet the new boss, same as the old boss. government is the boss. wall street is the new boss. government is wall street and the unions. that's the new boss. neil: musical and art
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representation. >> the point is, maybe the congress will take this option. neil: oh, congress. >> the point is, we're not going to force them to any more than we don't want them to force us to. neil: all right. remember those high gas prices last summer? ben stein says they just revealed a white house push for green energy is all based on a big lie. and a fix for america's money fix. cut welfare? xxpx [ female announcer ] want color that shines all year long? spend 10 minutes a month with natural instincts. it's the healthier way to blend away gray and give you color that shines on. how? the antioxidant rich ammonia-free formula
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neil: the great hoax of our century. it is not to blame for last summer's $4 gas and $140-barrel oil though that is essentially what a government report is expected to reveal. ben stein has been looking at this and says that the real hoax, this proves the white house's green agenda is based essentially on a lie. explain. >> it's based on a major fiction. though supposedly the gasoline price hike skyrocketing and oil price skyrocketing last year was because they're having a fundamental shortage of industry and would make us switch to wind, solar, nuclear power, that was all a fraud. it was so speculators -- they did this complicated thing where they manipulated the price of
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natural gas and that, in turn, affected the oil futures. they pushed it up sky high. they made all of us suckers believe we were running out of oil, $300 oil, $400 oil so we had to switch to alternative forms of energy. that was a fraud. it was the speculators making money off us and ruining our lives. there's no basis now for a large part of the cap and trade and other energy portions of the bill. yes, there still is some question about green house gas, but there are an awful lot of scientists saying that's a fraud, too. can we go back, rethink this and say if there's no basis for it let's drop it? neil: just so i understand you. you're saying the perpetrators for last year's runup in energy prices were who? >> speculators. giant speculators, large part many of them former enron traders from houston and also in new york and london and hong kong. neil: all right. i guess we can debate that. but the administration claims to
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another argument. where does this go? >> well, you know, a lot of the policies we have now are based on the green movement, i find baffling anyway. really i think this green movement has been a way of destroying personal choice, capitalism, and even to a degree religion. it's been very successful in this country and around the world. it's just absolutely amazing to me. >> here's what we do know. we know this. as a nation, the majority of the oil that we consume is imported from overseas. we essentially put money in the hands of countries that hate us. i have no problem if the government wants to give people incentives at an individual level to buy and use fuel that come from the united states. we give incentives to save for retirement. we give incentives to buy a home. why not do that? i see ben's point was cap and trade. oppressive expansion of government that could ruin small
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business. however, some government incentives are not a bad thing. neil: could you turn around what ben was saying and saying if it were speculators, following, our program will never allow them again to do what they did. >> well, i think, first of all, i'm not as concerned about investors as ben is. i think investors had legitimate concerns that because of china and india's growth, there was going to be a supply problem. i think the regulators are acting stupidly. and i chose those words carefully in trying to rein in speculators. neil: careful with stupid it got one guy in a heech heap of trouble. >> i know. i had more time to think about it than he did. as far as the religion, it's interesting. there's an interesting segment of the green movement, christian fund mentalists who believe we need to do the right thing for the earth. and dagen has it right. we want to wean ourselves from foreign oil and try to not pollute the environment where possible. that's the reason for driving
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this. neil: well, stocks sizzling in july. the dow nearly 10%. our guys say it is not too late to jump on theirs. welcome to the now network. right now five co-workers are working from the road using a mifi, a mobile hotspot that provides up to five shared wifi connections. two are downloading the final final revised final presentation. - one just got an e-mail. - what?! - huh? - it's being revised again. the co-pilot is on mapquest. - ( rock music playing ) - and tom is streaming meeting psych-up music from meltedmetal.com.
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that's happening now with the new mifi from sprint, the mobile hotspot that fits in your pocket. sprint. the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com.
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neil: dow closing out july with its best month in years. now for the hottest stocks in august. charles? >> i like natural resources, coal stocks. earnings estimates are moving higher. i love the work on this. it has not taken off yet.
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neil: ben? >> i'm scared of resource stocks. i would say for a very small portion of your holdings it's a great play. i like r are qi, my investment, real estate investment fund. still paying a huge dividend. it has tripled since it was down. i like it for the long run. neil: had you said that, it would have been worse than adam's stupidly remark. >> yes. neil: adam? >> anything with such a big dividend is worrysome to say the least. i have a contrarian pick, cigna, an insurer. if dag in a is right and the health plan gets watered down, insurance plans will do well. neil: charles? >> i recommended money for breakfast but there's serious risk if this goes through and they have to go against uncle sam and others. neil: charles, thank you very much. money for breakfast, of course, on the very popular business travel, fox business network. [captioning made p